Despite achieving 42.8% revenue growth in 2026Q3, the company faces persistent margin pressure with gross margins hovering near 55.7% due to high fixed R&D costs of $71.0M.
| Metric | TTM | Jun'25 | Jun'24 | Jul'23 | Jul'22 | Jul'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 1.37B | 1.08B | 1B | 1.11B | 1.29B | 1.2B | 1.14B | 1.13B | 875.7M | 811.4M | 906.3M | 873.9M | 1.74B | 1.68B | 1.68B | 1.8B | 1.36B | 1.29B | 1.53B | 1.4B | 1.2B | 712.2M | 635.9M | 675.9M | 1.1B | 3.23B | 1.43B | 282.8M | 185.2M | 113.2M | 69.1M |
| Revenue Growth % | 30.59% | 8.39% | -9.56% | -14.41% | 7.8% | 5.51% | 0.53% | 29.07% | 7.92% | -10.47% | 3.71% | -49.87% | 3.95% | -0.31% | -6.78% | 32.3% | 5.37% | -15.4% | 9.54% | 15.98% | 69.1% | 12% | -5.92% | -38.45% | -66.03% | 126.01% | 405.8% | 52.7% | 63.6% | 63.82% | 63.36% |
| Cost of Goods Sold | 605.2M | 468M | 430.8M | 476M | 528.6M | 517.8M | 506.1M | 517M | 408.3M | 339.4M | 371.2M | 373.3M | 974.7M | 995M | 1B | 1.05B | 844.6M | 824.4M | 964.8M | 951.6M | 888.2M | 606.4M | 490.1M | 620.5M | 1.17B | 2.31B | 697.8M | 123.7M | 91.6M | 57M | 34.2M |
| COGS % of Revenue | - | 43.16% | 43.06% | 43.03% | 40.9% | 43.19% | 44.54% | 45.74% | 46.63% | 41.83% | 40.96% | 42.72% | 55.91% | 59.34% | 59.51% | 57.96% | 61.93% | 63.69% | 63.05% | 68.13% | 73.75% | 85.14% | 77.07% | 91.8% | 106.64% | 71.35% | 48.78% | 43.74% | 49.46% | 50.35% | 49.49% |
| Gross Profit | 760.5M | 616.3M | 569.6M | 630.1M | 763.8M | 681.1M | 630.2M | 613.3M | 467.4M | 472M | 535.1M | 500.6M | 768.5M | 681.9M | 681.1M | 758.7M | 519.3M | 470M | 565.3M | 445.2M | 316.1M | 105.8M | 145.8M | 55.4M | -72.9M | 926.1M | 732.6M | 159.1M | 93.6M | 56.2M | 34.9M |
| Gross Margin % | 55.69% | 56.84% | 56.94% | 56.97% | 59.1% | 56.81% | 55.46% | 54.26% | 53.37% | 58.17% | 59.04% | 57.28% | 44.09% | 40.66% | 40.49% | 42.04% | 38.07% | 36.31% | 36.95% | 31.87% | 26.25% | 14.86% | 22.93% | 8.2% | -6.64% | 28.65% | 51.22% | 56.26% | 50.54% | 49.65% | 50.51% |
| Gross Profit Growth % | - | 8.2% | -9.6% | -17.5% | 12.14% | 8.08% | 2.76% | 31.22% | -0.97% | -11.79% | 6.89% | -34.86% | 12.7% | 0.12% | -10.23% | 46.1% | 10.49% | -16.86% | 26.98% | 40.84% | 198.77% | -27.43% | 163.18% | 175.99% | -107.87% | 26.41% | 360.47% | 69.98% | 66.55% | 61.03% | 79.9% |
| Operating Expenses | 649.1M | 545.4M | 526.6M | 531M | 578.6M | 545.2M | 540.1M | 536.4M | 457.2M | 436.8M | 517.5M | 549.6M | 744.3M | 686M | 675M | 677M | 557.8M | 574.7M | 643.9M | 536.8M | 458.6M | 251M | 312M | 834.4M | 7.93B | 56.62B | 1.24B | 95.1M | 64.8M | 38.7M | 22M |
| OpEx % of Revenue | - | 50.3% | 52.64% | 48.01% | 44.77% | 45.48% | 47.53% | 47.46% | 52.21% | 53.83% | 57.1% | 62.89% | 42.7% | 40.91% | 40.13% | 37.52% | 40.9% | 44.4% | 42.08% | 38.43% | 38.08% | 35.24% | 49.06% | 123.45% | 721.71% | 1751.3% | 86.48% | 33.63% | 34.99% | 34.19% | 31.84% |
| Selling, General & Admin | 399M | 336.7M | 324.7M | 324.1M | 365.4M | 342.2M | 346.5M | 349.4M | 323.9M | 300.5M | 351.1M | 376.3M | 450.4M | 427.5M | 429M | 437.1M | 382.9M | 404.6M | 455.8M | 368.4M | 325.3M | 157.3M | 144.7M | 267.3M | 382.9M | 818.1M | 172.9M | 37.4M | 39.9M | 24M | 19.9M |
| SG&A % of Revenue | - | 31.05% | 32.46% | 29.3% | 28.27% | 28.54% | 30.49% | 30.91% | 36.99% | 37.03% | 38.74% | 43.06% | 25.84% | 25.49% | 25.5% | 24.22% | 28.07% | 31.26% | 29.79% | 26.37% | 27.01% | 22.09% | 22.76% | 39.55% | 34.87% | 25.31% | 12.09% | 13.22% | 21.54% | 21.2% | 28.8% |
| Research & Development | 250.1M | 208.7M | 201.9M | 206.9M | 213.2M | 203M | 193.6M | 187M | 133.3M | 136.3M | 166.4M | 173.3M | 293.9M | 258.5M | 246M | 239.9M | 174.9M | 170.1M | 188.1M | 168.4M | 133.3M | 93.7M | 99.5M | 153.7M | 254.8M | 325.9M | 113.4M | 27M | 14.8M | 9.9M | 5.8M |
| R&D % of Revenue | - | 19.25% | 20.18% | 18.71% | 16.5% | 16.93% | 17.04% | 16.54% | 15.22% | 16.8% | 18.36% | 19.83% | 16.86% | 15.42% | 14.62% | 13.29% | 12.82% | 13.14% | 12.29% | 12.06% | 11.07% | 13.16% | 15.65% | 22.74% | 23.2% | 10.08% | 7.93% | 9.55% | 7.99% | 8.75% | 8.39% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 67.8M | 413.4M | 7.29B | 55.47B | 950.7M | 30.7M | 10.1M | 4.8M | -3.7M |
| Operating Income | 111.4M | 70.9M | 43M | 99.1M | 185.2M | 135.9M | 90.1M | 76.9M | 10.2M | 35.2M | 17.6M | -49M | 24.2M | -4.1M | 6.1M | 81.7M | -38.5M | -104.7M | -78.6M | -91.6M | -142.5M | -145.2M | -180.3M | -900.7M | -8.28B | -56.35B | -504.4M | 64M | 28.8M | 17.5M | 12.9M |
| Operating Margin % | 8.16% | 6.54% | 4.3% | 8.96% | 14.33% | 11.34% | 7.93% | 6.8% | 1.16% | 4.34% | 1.94% | -5.61% | 1.39% | -0.24% | 0.36% | 4.53% | -2.82% | -8.09% | -5.14% | -6.56% | -11.83% | -20.39% | -28.35% | -133.26% | -754.33% | -1742.99% | -35.26% | 22.63% | 15.55% | 15.46% | 18.67% |
| Operating Income Growth % | - | 64.88% | -56.61% | -46.49% | 36.28% | 50.83% | 17.17% | 653.92% | -71.02% | 100% | 135.92% | -302.48% | 690.24% | -167.21% | -92.53% | 312.21% | 63.23% | -33.21% | 14.19% | 35.72% | 1.86% | 19.47% | 79.98% | 89.13% | 85.3% | -11071.17% | -888.13% | 122.22% | 64.57% | 35.66% | 115% |
| EBITDA | 207M | 133.6M | 101.7M | 168.6M | 260.6M | 238.2M | 197.9M | 189.1M | 93.6M | 92.9M | 87.6M | 83.2M | 155.7M | 140.5M | 163.9M | 234.9M | 98.2M | 39.7M | 65.9M | 36.8M | -60.7M | -97.3M | -122.6M | -770.6M | -6.51B | -50.75B | 446.3M | 94.7M | 38.9M | 22.3M | 15M |
| EBITDA Margin % | 15.16% | 12.32% | 10.17% | 15.24% | 20.16% | 19.87% | 17.42% | 16.73% | 10.69% | 11.45% | 9.67% | 9.52% | 8.93% | 8.38% | 9.74% | 13.02% | 7.2% | 3.07% | 4.31% | 2.63% | -5.04% | -13.66% | -19.28% | -114.01% | -593.13% | -1569.92% | 31.2% | 33.49% | 21% | 19.7% | 21.71% |
| EBITDA Growth % | 72.36% | 31.37% | -39.68% | -35.3% | 9.4% | 20.36% | 4.65% | 102.03% | 0.75% | 6.05% | 5.29% | -46.56% | 10.82% | -14.28% | -30.23% | 139.21% | 147.36% | -39.76% | 79.08% | 160.63% | 37.62% | 20.64% | 84.09% | 88.17% | 87.17% | -11471.81% | 371.28% | 143.44% | 74.44% | 48.67% | 108.33% |
| D&A (Non-Cash Add-back) | 95.6M | 62.7M | 58.7M | 69.5M | 75.4M | 102.3M | 107.8M | 112.2M | 83.4M | 57.7M | 70M | 132.2M | 131.5M | 144.6M | 157.8M | 153.2M | 136.7M | 144.4M | 144.5M | 128.4M | 81.8M | 47.9M | 57.7M | 130.1M | 1.77B | 5.59B | 950.7M | 30.7M | 10.1M | 4.8M | 2.1M |
| EBIT | 111.4M | 70.9M | 42.5M | 87.8M | 88.4M | 145.5M | 127.7M | 73.6M | 11.6M | 229.8M | -10.2M | -72M | -2.5M | -29M | -16.3M | 71M | -32.9M | -861M | -10.5M | -17.2M | -151.6M | -245.7M | -166.2M | -779M | -8B | -55.69B | -504.4M | 64M | 28.8M | 17.5M | 12.9M |
| Net Interest Income | -41.2M | -16.9M | -12M | -16.9M | -19.9M | -11.8M | -26.6M | -26.2M | -31.3M | -32.1M | -29.8M | -29.6M | -24.7M | -15.2M | -23.8M | -21.5M | -18M | 11.2M | 39.3M | 50.5M | 27.7M | -8.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 13.1M | 18.9M | 10.2M | 3.4M | 2.9M | 7.1M | 8.1M | 16M | 11.1M | 5.9M | 3.7M | 3.7M | 2.7M | 3.5M | 3.9M | 6.3M | 18.9M | 48.1M | 57.6M | 27.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 41.2M | 30M | 30.9M | 27.1M | 23.3M | 14.7M | 33.7M | 34.3M | 47.3M | 43.2M | 35.7M | 33.3M | 28.4M | 17.9M | 27.3M | 25.4M | 24.3M | 7.7M | 8.8M | 7.1M | 0 | 8.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -128.2M | -31.7M | -31.4M | -38.4M | -120.1M | -5.1M | 3.9M | -37.6M | -45.9M | 151.4M | -63.5M | -56.3M | -55.1M | -42.8M | -49.7M | -36.1M | -18.7M | -764M | 59.3M | 67.3M | -9.1M | -109.4M | 51.9M | -19.6M | -217M | -146.4M | -325.4M | -213.6M | -37M | -29.9M | -6.1M |
| Pretax Income | -16.8M | 39.2M | 11.6M | 60.7M | 65.1M | 130.8M | 94M | 39.3M | -35.7M | 186.6M | -45.9M | -105.3M | -30.9M | -46.9M | -43.6M | 45.6M | -57.2M | -868.7M | -19.3M | -24.3M | -151.6M | -254.6M | -128.4M | -920.3M | -8.5B | -56.49B | -829.8M | -149.6M | -8.2M | -12.4M | 6.8M |
| Pretax Margin % | -1.23% | 3.62% | 1.16% | 5.49% | 5.04% | 10.91% | 8.27% | 3.48% | -4.08% | 23% | -5.06% | -12.05% | -1.77% | -2.8% | -2.59% | 2.53% | -4.19% | -67.11% | -1.26% | -1.74% | -12.59% | -35.75% | -20.19% | -136.16% | -774.08% | -1747.52% | -58.01% | -52.9% | -4.43% | -10.95% | 9.84% |
| Income Tax | 38.3M | 4.4M | 37.4M | 35.2M | 49.6M | 63.3M | 65.3M | 31.5M | 12.9M | 21.3M | 4.5M | 26.1M | -13.1M | -103.9M | 12M | -26M | 2.5M | -2.3M | 2.4M | 2M | -400K | 6.7M | -15.8M | 13.5M | 237.3M | -371.9M | 74.9M | 21.5M | 11.4M | 5.4M | 4M |
| Effective Tax Rate % | -227.98% | 11.22% | 322.41% | 57.99% | 76.19% | 48.39% | 69.47% | 80.15% | -36.13% | 11.41% | -9.8% | -24.79% | 42.39% | 221.54% | -27.52% | -57.02% | -4.37% | 0.26% | -12.44% | -8.23% | 0.26% | -2.63% | 12.31% | -1.47% | -2.79% | 0.66% | -9.03% | -14.37% | -139.02% | -43.55% | 58.82% |
| Net Income | -55.1M | 34.8M | -25.8M | 25.5M | 15.5M | 67.5M | 28.7M | 5.4M | -48.6M | 166.9M | -99.2M | -88.1M | -17.8M | 57M | -55.6M | 71.6M | -61.8M | -866.4M | -21.7M | -26.3M | -151.2M | -261.3M | -115.5M | -933.8M | -8.74B | -56.12B | -904.7M | -171.1M | -19.6M | -17.8M | 2.8M |
| Net Margin % | -4.03% | 3.21% | -2.58% | 2.31% | 1.2% | 5.63% | 2.53% | 0.48% | -5.55% | 20.57% | -10.95% | -10.08% | -1.02% | 3.4% | -3.31% | 3.97% | -4.53% | -66.93% | -1.42% | -1.88% | -12.55% | -36.69% | -18.16% | -138.16% | -795.69% | -1736.02% | -63.25% | -60.5% | -10.58% | -15.72% | 4.05% |
| Net Income Growth % | -1180.39% | 234.88% | -201.18% | 64.52% | -77.04% | 135.19% | 431.48% | 111.11% | -129.12% | 268.25% | -12.6% | -394.94% | -131.23% | 202.52% | -177.65% | 215.86% | 92.87% | -3892.63% | 17.49% | 82.61% | 42.14% | -126.23% | 87.63% | 89.31% | 84.43% | -6103.37% | -428.76% | -772.96% | -10.11% | -735.71% | 300% |
| Net Income (Continuing) | -55.1M | 34.8M | -25.8M | 25.5M | 15.5M | 67.5M | 28.7M | 7.8M | -48.6M | 165.3M | -50.4M | -131.4M | -17.8M | 57M | -55.6M | 71.6M | -59.7M | -866.4M | -21.7M | -26.3M | -151.2M | -261.3M | -112.6M | -933.8M | -8.74B | -56.12B | -904.7M | -171.1M | -19.6M | -17.8M | 2.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.4M | 0 | 1.6M | -48.8M | 43.3M | 0 | 0 | 0 | 0 | -2.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.22 | 0.15 | -0.12 | 0.11 | 0.07 | 0.29 | 0.12 | 0.03 | -0.20 | 0.71 | -0.42 | -0.37 | -0.08 | 0.24 | -0.25 | 0.31 | -0.28 | -4.02 | -0.10 | -0.12 | -0.73 | -1.45 | -0.64 | -5.26 | -52.00 | -411.19 | -10.18 | -2.15 | -2.32 | -0.68 | 0.16 |
| EPS Growth % | -1273.21% | 225% | -209.09% | 68.97% | -77.55% | 141.67% | 256.08% | 116.85% | -128.17% | 269.05% | -13.51% | -386.84% | -131.67% | 196% | -180.65% | 210.71% | 93.03% | -4044.33% | 19.17% | 83.56% | 49.66% | -126.56% | 87.83% | 89.88% | 87.35% | -3939.19% | -373.49% | 7.33% | -241.18% | -525% | 100% |
| EPS (Basic) | - | 0.16 | -0.12 | 0.11 | 0.07 | 0.30 | 0.13 | 0.03 | -0.20 | 0.73 | -0.43 | -0.37 | -0.08 | 0.24 | -0.25 | 0.32 | -0.28 | -4.02 | -0.10 | -0.12 | -0.73 | -1.45 | -0.64 | -5.26 | -52.00 | -411.19 | -10.18 | -2.15 | -2.32 | -0.68 | 0.16 |
| Diluted Shares Outstanding | 249.5M | 225.7M | 222.6M | 226.6M | 238.2M | 236.3M | 233.7M | 231.2M | 227.1M | 234.5M | 234M | 232.7M | 234.2M | 239.3M | 230M | 232.6M | 218.9M | 215.6M | 223.8M | 211.7M | 206.2M | 180.21M | 180.47M | 177.46M | 168.04M | 136.49M | 88.86M | 79.56M | 35M | 27.81M | 23.75M |
| Basic Shares Outstanding | 232M | 222.5M | 222.6M | 224.6M | 230.9M | 228.7M | 229.4M | 228.1M | 227.1M | 229.9M | 229.09M | 230.53M | 233.13M | 235M | 230M | 224.4M | 218.9M | 215.6M | 223.8M | 211.7M | 206.2M | 180.21M | 180.47M | 177.46M | 168.04M | 136.49M | 88.86M | 79.56M | 35M | 27.81M | 23.75M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical Telecommunications CAPEX Exposure
According to recent quarterly filings, VIAV achieved a significant revenue acceleration to 42.8% year-over-year growth in 2026Q3, marking a sharp departure from the negative growth trends observed in early 2024, though the sustainability of this expansion remains contingent on volatile telecommunications infrastructure spending cycles.
The recent surge in top-line performance suggests a potential recovery in network build-out activity, yet investors should monitor whether this is driven by sustainable demand or temporary project-based spikes. The transition from negative growth in 2024 to double-digit expansion indicates a shift in market conditions that warrants further investigation into segment-level contributions.
As reported in financial statements, VIAV's gross margins have hovered near 55-56% over the last three quarters, suggesting that despite revenue growth, the company struggles to expand profitability due to the high fixed-cost nature of its specialized optical manufacturing and R&D-heavy network testing portfolio.
The inability to meaningfully expand gross margins despite significant revenue growth implies that the company may be facing pricing pressure or unfavorable product mix shifts. This lack of operating leverage suggests that the firm's current cost structure is not yet optimized to capture the full benefit of increased sales volume.
Based on reported figures, VIAV's net income has exhibited extreme volatility, swinging from a $48.1M loss in 2026Q2 to a $6.4M profit in 2026Q3, a trend largely driven by non-operating items and significant stock-based compensation expenses that consistently impact the bottom line.
The inconsistency in net income suggests that reported earnings may not be a reliable indicator of core operational health. Investors should focus on the impact of stock-based compensation, which remains a persistent drag on profitability and complicates the assessment of true shareholder value creation.
Analysis of the income statement reveals that R&D and SG&A expenses remain elevated, with R&D spending reaching $71.0M in 2026Q3, indicating that management continues to prioritize long-term innovation over immediate margin expansion in a highly competitive communication equipment landscape.
The high level of R&D investment appears necessary to maintain the company's competitive moat in optical security and network testing, yet it leaves little room for margin improvement during periods of revenue stagnation. This cost structure suggests that the firm is highly sensitive to volume deleveraging if market demand softens.
Quick answers to the most common questions about buying VIAV stock.
For fiscal year 2025, Viavi Solutions Inc. (VIAV) reported total revenue of $1.08B. This represents a 1469.2% increase compared to $69.1M in 1996.
Viavi Solutions Inc. (VIAV) is profitable, generating $34.8M in net income for the fiscal year ending 2025 with a net profit margin of 3.2%.
Viavi Solutions Inc. (VIAV) reported an operating income of $70.9M, resulting in an operating profit margin of 6.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Viavi Solutions Inc. (VIAV) generated $616.3M in gross profit for the year, representing a gross profit margin of 56.8%. This demonstrates the company's core pricing power and production efficiency.